Company formation in Estonia
Are you considering an opportunity to establish a business in Europe and looking for a suitable jurisdiction to register a European company?
Start a company in Estonia just in a few days!
It is very easy to open a company — the choice of Estonia as a place to incorporate your enterprise is obvious, because only in our country there is no corporate income tax on retained earnings.
Launch your own EU-based business in Estonia!
Setting up a company in Estonia can be done quickly and simply within 1 week – registration of an undertaking can be done in person or remotely on the basis of a power of attorney or using e-Residency.Get In Touch With Us - Corporate Services Are Our Specialty! Send enquiry
Register a company in Estonia in 1-5 days
Open a company in Estonia. Legal & accounting services. Get started!
If you have decided to launch your business in Europe and bring your project to the European Union market, then registering a company in Estonia can be an ideal starting point for your enterprise. This choice provides a strategic gateway to the EU, coupled with favorable business climate and advanced digital infrastructure.
The easiest and most attractive way to start a business in the EU
Estonia is widely recognized as one of the most open and dynamic economies in Europe, known for its progressive and adaptable commercial environment. Thanks to the transparency and simplicity of the enterprise establishment process in the Business Register, your legal entity can be registered and ready to operate within a few days.
COMPANY IN ESTONIA
Unlocking Business Opportunities in Estonia: Zero Corporate Tax
If you’re resolved to establish a company in Europe, then prioritizing Estonia as the location for your undertaking setup should be a top consideration. For a long duration, Estonia has concentrated exclusively on shaping a welcoming and innovative business setting, designed to entice foreign capital and entrepreneurs based outside its borders.
• Population: 1.3 million people
• Currency: Euro (€)
• Tax Competitiveness Index: 1st place
• Ease of Doing Business: 18th place
• Corporate Tax in Estonia: 0%
• Most popular type of legal entity: OÜ or Osaühing (analogue of LLC)
Estonia is an ideal destination for setting up a business, especially for global entrepreneurs and digital nomads. Its e-Residency program allows easy management of an EU-based business online. The country offers a simple, competitive tax system and a tech-friendly environment, with a skilled workforce and a strong focus on innovation. Its strategic location provides easy access to European and Asian markets, making it a prime choice for international business expansion.
A leading European hub for innovation and fintech
As a result, Estonia has evolved into a vibrant center for a diverse array of European IT cluster and forward-thinking startups. This includes a spectrum of blockchain ventures, crypto exchanges, and innovative WEB 3.0 projects. It’s also a breeding ground for DAOs (Decentralized Autonomous Organizations), bustling NFT marketplaces, as well as a hub for fintech companies, dynamic crowdfunding platforms, and emerging DeFi models, all contributing to its burgeoning tech landscape.
Main advantages and benefits of setting up a business in Estonia
For many years in a row, Estonia is a leading country (1st place) in the International Tax Competitiveness Index rankings and on a permanent basis is taking top positions (18th place) in the Ease of Doing Business Index rankings.
Expand the horizons of your business
Establishing a company in Estonia is going to undoubtedly become an effective tool for the effective start of your business-project and it’s introduction to international markets, so as assisting to diversify risks and to lower administrative load and tax load of the already existing enterprise.
- The tax rate on retained earnings is 0%
Enterprise profits are not subject to corporate or income tax until they are distributed to the founders – all profits generated by the enterprise can be used in full for business development or reinvested to generate additional income.
- The minimum amount of the share capital is 0.01 euros
When registering a company, the founders may form the share capital of any size, and if the amount of the contributed ownership capital does not exceed 50,000 euros, the Commercial Register does not require any documentary proof of payment into the charter fund of the entity (i.e. confirmation from the bank or the payment system).
- Full integration into the e-state of Estonia
Ability to use the electronic services of Government Institutions (Commercial Register, Tax and Customs Board, etc.) and remote management of your company’s affairs (submitting annual reports, making changes to the corporate structure, etc.).
This overview only scratches the surface of the numerous benefits associated with incorporating a company in Estonia. Thus, locating your enterprise or start-up in the jurisdiction of the Republic of Estonia will stand out favorably from other alternatives and will help bring your business project into the legal framework of the European Union as soon as possible.
COMPANY REGISTRATION IN ESTONIA
You can register a company and start a business in Estonia in just a few days
Estonia has become a magnet for many foreign entrepreneurs and investors thanks to its innovative approach to business regulation and digital economy. Over the past 20 years, the Government of the Republic of Estonia has pursued an active policy aimed at attracting foreign entrepreneurs and investors to the country.
Estonia is a 100% digital nation
The near-total digitization of the public sector and the business environment in Estonia allows foreign investors and entrepreneurs to easily and quickly register companies, manage finances, pay taxes, and conduct business online. Furthermore, Estonia is a member of the European Union, which means foreign investors benefit from the advantages associated with the single European market economy and free trade policy.
Online company registration using e-Residency
In addition, in 2014, Estonia launched the e-Residency program, which allows foreigners to fully utilize the services of the Estonian e-Government, including registering companies online and managing their business projects remotely from anywhere in the world – as a result, to date, more than 25,000 enterprises have been created by e-Residents.
WAYS TO SET UP A COMPANY IN ESTONIA
What methods can I use to start a company in Estonia?
The process of setting up a company in Estonia is completely devoid of bureaucracy, and it is as simple and transparent as possible – anyone interested can create a company in Estonia in just a few days.
Foreigners interested in opening a company in Estonia can use the following methods to register their enterprise:
- Register a company online with e-Residency | 1 day, Price from 375€
In order to set up an enterprise in the specialised online environment of the Commercial Register, all active persons of the company (members and general managers) will require an e-Residency card.
- Company incorporation in Estonia in person | 1-5 days, Price from 550€
The procedure requires a personal visit to the notary’s office in Tallinn. Our lawyers will hold a preliminary consultation with you and will provide you with legal support throughout the entire process.
- Open a company remotely by power of attorney | 5-10 days, Price from 900€
Create a company remotely without personal presence, you should issue a notarised power of attorney in the name of the lawyers of our agency, and we will carry out the procedure for establishing an undertaking on your behalf.
Our specialists will hold a preliminary consultation with you and offer you the best options to incorporate an enterprise, as well as prepare all the necessary constituent documentation and will provide you with support throughout the entire process of establishing an undertaking.
Corporate Services for non-Residents
Outlined below is a detailed breakdown of the fees for launching a company in Estonia. This includes a comprehensive list of costs associated with various additional corporate and legal services that we offer to support your undertaking’s setup.
- Type of servicesPrice
- Opening a company online with e-Residency - Basic package375 €
- Advanced package700 €
- Company registration in person by visit - Basic package550 €
- Advanced package850 €
- Establishing a company remotely by power of attorney - Basic package900 €
- Advanced package1200 €
- Contact person in Estonia (price for 1 year)250 €
- Legal address in Tallinn (price for 1 year)250 €
- Legal address and Contact person (price for 1 year)400 €
- Opening of corporate IBAN bank or payment account (price from)300 €
- Legal or accounting advice (price for 1 hour)75 €
* The cost of formation of an entity, regardless of the method and package, includes payment of all notary fees and state fees. The Advanced package includes 1 hour of a legal or accounting advise, as well as service of a legal address and contact person for one year. The above prices do not include a possible VAT.
WHY YOU SHOULD TURN TO US?
Eesti Firma OÜ is a reliable and experienced partner in the field of corporate services
Our team of consultants, lawyers and accountants has been specialising in commercial law and foreign business support in European Union for over 10 years.
Team of corporate advisors and lawyers with 10+ years of experience
The experience and knowledge we have gained over the years enable us to offer our clients only the highest quality service and to find solutions for the most complex and unusual situations.
The main reasons to contact us for company registration in Estonia:
- Reliable service provider
We are a licensed company registrar in Estonia and hold the state license of provider of trust and corporate services No. FIU000144, issued by the Financial Intelligence Unit (FIU).
- Experience of many years and qualified specialists
Our team consists of experienced consultants and only graduate lawyers and accountants. More than 3,000 enterprises have been incorporated with our help in 10 years of activity.
- All services in a single place
We are a direct service provider and provide services using only our own resources, with no third parties involved in the process. All consultants, lawyers and accountants are employees of our agency.
- Quality guarantee
We guarantee impeccable quality and efficiency, as well as complete confidentiality and a responsible approach to each client.
- We value our clients
If you are our client, you can always count on our support, including free legal or accounting advice from our specialists if necessary.
We will be glad to become your trusted partner for many years to come, and we will do everything we can to ensure that your undertaking’s entry into the market meets your expectations as closely as possible.
All you need to successfully establish a company in Estonia and launch your business in European Union
We offer a full range of services necessary for the successful creating a company in Estonia, start of commercial activities and further growth of your business. Among other things, we offer our clients the following corporate and support services:
- Accounting services
We offer comprehensive Tax and Accounting Service for local undertakings. Our specialists will provide you with qualified accounting support in current document management, as well as in preparing Annual Reports, filing tax returns, obtaining VAT number and EORI number, accounting for fixed assets, calculating salaries of employees, etc.
- Legal address and contact person
Every entity formed in Estonia must have a legal address. For those enterprises that do not have local residents among their founders and directors, we strongly recommend appointing a Contact Person who can receive correspondence sent to the organization and official notices from state institutions. We offer a legal address service in Tallinn as well as a Virtual Office and contact person service for non-residents.
- Legal services
Our lawyers have many years of experience in the field of corporate and civil law. We will give you a thorough consultation on the subject of your interest, help you to analyse or correctly prepare the required legal documentation and, if necessary, represent you in negotiations with contractors or in court proceedings.
- Payment accounts opening
We provide assistance in оpening of payment accounts with banks and payment systems (EMI and PSP) in the territory of the European Union. We will find and offer you the best and most efficient payment solution based on your corporate model and the nature of your business activities.
We offer professional business consulting, accounting and legal support to projects that are at the initial stage of development as well as to operating enterprises seeking to restructure their internal processes and optimise their economic performance.
Get an initial consultation and a price quote today!
Are you interested in registering a business in Estonia? For individual price quotations on company establishing in Estonia, as well as its further support and service, feel free to contact our specialists and consultants!
Corporate services are our specialty!
We will analyze your business model together with you and offer you the most effective Estonian company establishment solution in order to bring your business project to the single market of the European Union as soon as possible.
Company in Estonia | FAQ
Estonia attracts entrepreneurs from all over the world thanks to its innovative economy, ease of doing business, and progressive digital infrastructure. Our goal is to provide you with useful information that will help you understand the process and benefits of registering your business in this advanced country.
Below, you will find a list of the most frequently asked questions that our consultants encounter in their work. We hope that this material will be interesting and useful to you.
- What is the best legal form for opening a company in Estonia?
The most common and effective form for establishing a legal entity in Estonia is the Private Limited Company, or PLC for short (OÜ or osaühing in Estonian). The minimum number of participants is 1 founder (shareholder) and 1 member of the Management Board (Director). The liability of the partners in a PLC is limited to their contributions to the share capital.
- How do I choose a name for my future entity?
The name of a legal entity established in Estonia must clearly differ from the names of previously established entities, both in spelling and phonetically. You can check the availability of the desired legal name on the website of the Commercial Register.
- Do I have to pay the share capital for an Estonian company?
Yes, the share capital has to be formed at registration — the minimum amount of the share capital is 0.01 euros (1 euro cent). However, the founders are not required to submit any documents to the Commercial Register confirming the payment of the share capital, if the amount to be registered does not exceed 50,000 euros.
- How can I pay the share capital?
The share capital can be paid in cash into the corporate account, by a non-cash contribution by transferring the assets of shareholders to the undertaking’s balance (phones, computers, property rights, etc.) or by an equity issuance, whereby the retained earnings for any reporting period are transferred to the share capital.
- Can foreigners be founders and directors of an Estonian enterprise?
Yes, they can; in general, a resident of any country can set up a company in Estonia. Foreigners can become founders and directors of legal entities without any restrictions.
- Can a foreign entity be a founder of an Estonian undertaking?
Yes, it can; a legal person registered in a foreign country (parent company) can become a founder of an Estonian entity (subsidiary company). In order to incorporate such a structure, we will first need recent (no more than 3 months old) official corporate documents of the foreign corporate structure, which must show the registration details of the legal entity as well as it’s directors, founders and beneficiaries.
- Can one person be the shaerholder and the director of a company at the same time?
Yes, he/she can; one person can be both founder (shareholder) and director (member of the Management Board) of a company.
- How do I choose the right field of activity for my company?
When registering a company, only one intended field of activity is indicated, which is purely informative and does not constitute a binding circumstance for the enterprise. The field of activity should be selected from the EMTAK classifier, which is an adapted version of the international harmonised NACE classifier. Our consultants can help you find and choose the field of activity that best suits your business model.
- Does the choice of the field of activity impose any restrictions on the business?
Estonian companies have the full right to conduct their activities freely in all areas that are not prohibited or restricted by the relevant legislative enactments. It is common practice that the field of activity is not specified in the articles of association, so changing or extending the field of activity does not entail any difficulties or unnecessary bureaucracy. A legal person can be active in several fields of activity at the same time.
- Can an Estonia incorporated entities have payment accounts in foreign banks?
Yes, it can; you are free to open and use current accounts with banks and EMI/PSP payment systems outside Estonia. The most popular payment services providing the possibility of opening a current IBAN account are Paysera, Wise and Revolut.
- I need corporate documents, where can I get them?
An electronic version of the corporate documents can be found on the website of the Commercial Register. If you need paper versions of the register card, articles of association, memorandum of association and other corporate documents, certified and apostilled, you can order them through us.
- Is it required to pay salary to the director on a compulsory basis?
No, it is not required; the management board member has the right to perform his/her duties for free and not to receive any remuneration for his/her activities.
- Is it required to keep accounting records and file financial statements?
Yes, it is necessary; all undertakings are obliged to keep accounting records, register all transactions and also keep all primary accounting documents. Also, all legal pesons are obliged to submit annual financial statements to the Commercial Register within 6 months of the end of the fiscal year (by default, no later than 30 June).
- Is it necessary to file financial statements if a enterprise did not conduct any activities?
Yes, it is necessary; even the undertaking that did not conduct any business activities during the financial year must submit an annual report (so-called zero balance) to the Commercial Register.
- Is there a corporate income tax in Estonia?
Indeed, in Estonia, enterprises benefit from the absence of corporate income tax. This means profits are exempt from taxation, allowing complete freedom to reinvest earnings in undertaking’s development, acquisition of assets, securities, and more. Tax obligations, at a rate of 20/80 (effectively 25%), only arise when profits are actually distributed and dividends are paid out to the founders.
- Does the undertaking have to register as a VAT payer?
The undertaking must register as a VAT payer as soon as the enterprise’s turnover subject to VAT within one business year exceeds 40,000 euros. In other cases, registration as a VAT payer is voluntary.
- Is it necessary to pay taxes when making payments to foreign workers?
No, it is not necessary; if the enterprise pays salaries or other benefits to it’s employees or freelancers who are not Estonian tax residents, the undertaking has no tax liability. In such a case, the obligation to declare income and pay taxes arises for the recipients of the payments according to the rules and rates of the jurisdiction of their tax residence.
- How do I find out my company’s tax number TIN?
Estonian enterprises do not have any separate tax identification number TIN. A registration number is used to identify the legal entity to the tax authorities and other state institutions.
- How long does it take to register a company?
An application for the registration of a company will be processed within 1 working day if it was submitted online on the website of the Commercial Register (formation through e-Residency) or within 5 working days if the application was submitted through a notary (incorporation in person or by a notarised power of attorney).
- How can I register a company online?
In order to be able to open a company online on the Internet portal of the Commercial Register, you must have an e-Resident card, which is used to verify your identity and is required for signing the legal person registration application with a digital signature.
- What is e-Residency?
e-Residency or e-Resident card is a smart card with a microchip that is issued by Estonia to non-residents and gives them digital signature capabilities. The e-Residency can be used to sign documents, identify an individual on the Internet and use electronic services of the Estonian e-State (including the establishment of legal persons).
- How can I apply for e-Residency?
You can fill out the e-Residency application form in the online environment of the Police and Border Guard Board. You can pick up your e-Residency starter kit at the following locations around the world.
- Do I need to hire a local director or employees for my Estonian enitity?
No, you do not have such an obligation.
- How many shareholders and directors can a company have?
An Estonian company must have at least one member of the management board (director) and one founder (shareholder). The maximum number of founders and directors is not established by law.
- What requirements do I have to fulfil in order to set up a company in Estonia?
In order to open a company in Estonia, an application must be submitted to the Commercial Register, which shall include: the corporate name, the personal details of the management board members, founders and beneficiaries, the corporsate phone number and e-mail address, the legal address, the details of a contact person, the field of activity with EMTAK or NACE code, and the text of the articles of association.
- Why is Estonia the most attractive jurisdiction for starting a business in Europe?
The main and most significant advantage of Estonia over all other countries of the European Union is the absence of corporate tax on retained earnings. This means that all the funds earned and accumulated by the undertaking will not be subject to income tax until profits are distributed and dividends are paid to shareholders. Thus, Estonian enterprises are free to invest their earnings or make investments without having to think about paying corporate taxes.
- How are the activities of Estonian enterprises regulated?
The activities of legal persons on the territory of Estonia are regulated by the Commercial Code, which is available for review in English.
- I would like to establish a company in Europe. Is Estonia suitable for me?
Yes, absolutely. Estonia is geographically located in northern Europe and has been a full member of the European Union and the common customs area since 2004. If you wish to start a European company and expand your business into the EU, then choosing Estonia as your main jurisdiction will be the best solution for you.
- How easy is it to start a company in Estonia in comparison with other European jurisdictions?
Estonia traditionally holds a leading position among European countries on the Ease of Doing Business Index, and this is no accident. A developed electronic state, the absence of excessive bureaucracy and attractive conditions for foreign investment will make the process of establishing an enterprise on the territory of Estonia as fast and convenient as possible for non-residents.
We hope the information provided has helped you better understand the process of registering a company in Estonia and answered some of your questions. Registering a business in this country can open new opportunities and offer many advantages, from an efficient tax system to access to the European market.
If you have any further questions or need additional assistance, do not hesitate to contact our specialists. We are ready to support you at every step of your entrepreneurial journey. Good luck with your endeavors in Estonia!